Air New Zealand's CEO says the airline will trim more flights, with a forecast it'll be $390 million in the red this financial year.

It's blaming the fuel cost hike lifting spending $240 million more than expected. 

The airline told NZX it's already reduced overall capacity three to five percent since the Iran war began.

Nikhil Ravishankar says cuts may continue even after jet fuel prices ease, with cuts for August to October announced soon.

"We either sort of roll over the changes that we've made into July - or we might have to go a bit further, depending on what fuel's doing."

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